There has been a lot of focus around Conversion Rate Optimization (CRO) in the last decade, many retailers are still missing the mark – and revenues – as a result.

Many organizations obsess around conversion rate.  This is a very important metric, although it needs to be taken in context.  Conversion rate measures a level of efficiency.  This can ultimately be skewed by quality of product, promotions, or seasonality.  For example, putting a promotion on a particular product will often drive conversion rates much higher.

Where this runs into problems is when popularity is used to drive conversion increases vs. revenue objectives. The easiest way to drive conversion is to sell things cheaper.  The real objective should be to increase the overall Revenue Per Visit (RPV) – which can be accomplished by selling higher priced options more often.  This ultimately drives more revenue (and more net profit) through reducing discounts.

CRO is likely a top priority for e-commerce teams but according to research the average conversion rate for retail brands is between 1.81% and 3.71%, pointing to major issues with CRO strategies across the retail industry. While testing and retesting can help pinpoint the CRO disconnect, retailers must not rely on old strategies and one-dimensional metrics like CRO that may have worked in the past.

Brands must not rely on CRO alone. While it can be very effective and drive sustainable growth, CRO should be considered just one piece of the puzzle in a more comprehensive ecommerce strategy. Retailers who embrace a more holistic approach that prioritizes profit optimization will be more successful at achieving their objectives and KPIs. For example, CRO can’t solve the return problem plaguing retailers globally. According to McKinsey, shoppers in the U.S. returned  $428 billion of goods in 2020 (a return rate of 10.6%) with e-commerce purchases accounting for nearly a quarter of all goods returned.

Whether shoppers find your online store by way of a Google search or because they are not finding what they’re looking for on Amazon.com, the following strategies take into account new technologies, new approaches and provide a more modern approach to RPV optimization. When combined, these best practices can enable retailers to meet RPV optimization goals and achieve their conversion objectives.

Best Practice #1 – Machine Learning-driven Intelligent Search

While search stands alone and might not be considered an RPV optimization strategy per se, if your search capabilities are outdated or less than accurate you will not only miss out on driving conversions, but will also increase the dreaded “bounce” rate  (more on that below). Search is an important engine responsible for a large percentage of retailers’ revenues; in fact, most ecommerce brands understand the importance of search, with 94% of respondents from our recent survey saying their organizations continue to invest in improving search capabilities.

On average, 40% of online shoppers search for products directly on the brand’s own website. Therefore, the first step to boosting conversions, and turning a decent conversion rate into a great one, requires a machine learning-driven search. This method uses behavior data to provide personalized recommendations while shoppers are in search mode. In addition, merchandisers can use the full power of analytics and conduct A/B testing to see what changes create the best results. Intelligent search helps shoppers quickly find what they are looking for, creating a better customer experience, and leading to a higher conversion rate. Don’t sleep on updating the search experience, it is inextricably linked to better CRO.

Best Practice #2: Personalize Shopping Experiences Using Session-Aware Recommendations

Shoppers are fond of product recommendations. This is what McKinsey’s conversion research found when they surveyed consumers and found that 35% of what consumers purchase on Amazon and 75% of what they watch on Netflix come from recommendations. Using session-aware recommendations to deliver personalized shopping experiences enables brands to show customers items related to their searches without requiring a lot of session data.​ This approach is effective even for consumers who might have cleared their browsers, shop in Incognito mode, or haven’t visited an online store in a long time.

Best Practice #3: Create Urgency with Tailored Offers 

Tailored offers are based on what you know about your customers and the products you sell. These offers can be used to incentivize purchases using smart personalization strategies. 

For example, for beauty product subscriptions, you can auto-serve personalized replenishment prompts by predicting when customers will need to stock up on their favorite makeup or skincare products. A notification prompt such as, “It’s time to stock up” will increase the likelihood of return visits, repeat purchases, and will build customer loyalty in the process.

Best Practice #4: Prevent the Dreaded Bounce

It may sound like common sense but having a better understanding of potential shopper exit behaviors can lead to an increase in conversions.  For example, when a customer highlights a product name it is likely that link will be copy- pasted into another tab for a price comparison. If you aren’t using the right RPV optimization tools to detect this, and offer an attractive alternative, you may have just lost a customer.

Exit behavior detection technology allows you to understand when and why a shopper might leave your site. More importantly, it serves a relevant offer that compels them to stay and purchase.

Best Practice #5: Do Rely on Proven Tactics

Product badges, also known as product labels or product stickers, are effective RPV boosting tools that highlight products in your online store. Badges that specifically focus on social proof, scarcity, and urgency have proven repeatedly to be the most effective. You can apply a product badge by combining text or an image with some design flair to make the badge stand out. Social proof is a way to show customers what shoppers like them are buying, which gives them the confidence to add items to their cart. A time tested tactic that works, badges can help create momentum and urgency for the desired action you want a website visitor to take by highlighting social demand.

These are just five effective RPV boosting tactics that enhance the shopping experience, which then paves the path to increasing conversions along the customer journey. Consumers are faced with an overwhelming amount of information and choices every time they land on a retailer’s website. By updating and doubling down on RPV optimization best practices and combining them to create and deliver a more powerful shopping experience, you can help meet customers’ needs, increasing loyalty and building a relationship that endures.

Brian P. McGlynn is a global technology executive and industry thought leader with a breadth of success across startups and fortune 10 companies, including bringing AI-powered solutions to market. For Coveo, (TSX:CVO), a global provider of artificial intelligence powered business solutions for ecommerce, customer service and workplace applications, Brian launched and now leads the ecommerce line of business. Under his stewardship, the division has grown into an industry leading AI search and discovery platform recognized by industry analysts and technology partners.